A sum of ₹4,620 is to be paid back in 2 equal annual instalments. How much is each instalment (in ₹) if the interest is compounded annually at 10% per annum?

2,662

Initial Sum = Rs. 4620

10% = \(\frac{1 }{10}\)

  10     :     11       -----(1)

  10²    :     11²

Multiply equation (1) by 11.

 10×11  :    11²

Total principal = 100 + 110 = 210

ATQ,

210R = 4620

1R = \(\frac{4620}{210}\) = 22

11²× R = 11 × 11 × 22

= Rs. 2662